Bgs chapter 4

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CHAPTER 4PRESENTED BY KIRAN.SHETTYEmail id :[email protected]


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PUBLIC POLICIES

• Introduction: public policy is an attempt by a govt to address a public issue by instituting laws,regualtions,decisions.

•Public policy : it is a basically a set of rules and regulations set forth that the public is expected to adhere to.

•Public laws are a classic example of public policy in the legality sense, while the laws of society are those that are unwritten but are still expected to be followed in public


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•Public policy is a course of action adopted and pursued by a government.

•Public: it comprises domain of human activity which is regarded as requiring governmental interventions or common actions

•Policy: a purposive course of action taken or adopted by those in power in pursuit if certain goals and objectives


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The following are the below points which defines the features of public policy•Public policy is whatever governments

chooses to do or not to do•Public policy is the outcome of struggle in

government over who gets what.•Public policy consists of political decisions

for implementing programs to achieve societal goals

•A public policy is a deliberate plan of actions of the government to guide decisions and achieve rational outcomes


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Categories of public policies

•Substantive and procedural policies:This is the classification of public policies

with respect to the time of execution. While the former is the policy the government is executing,doing,done or executed.

•Distributive, regulatory, self regulatory and re distributive policies:

This is the division of public policies with respect to allocation and control.


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Distributive policies concern the allocation of services and benefits of public resources to various segments of the economy.

•Material and symbolic policies:This is the categorization of public policies

with respect to the tangibility of power and or assets involved. Material policies are the policies that involve tangible assets or substantive powers to the beneficiaries or disadvantaged people in the economy.


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•Policies involving public goods and private goods:

Public goods are collectively owned, divisible and non excludable, so the policy is that they must be provided for everybody in the economy.

Example of public goods is Defense. Private goods are the goods that are privately owned, indivisible and excludable. For ex:food,book,clothes,houses


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•Liberal and conservative policies:This is the specification of policies with

respect to freedom and ability to influence or change policies.

Liberal policies are the policies that are easily amenable. For ex: Social policies on equlaity,movement of people,employment.conservative policies are the policies that are rigid or difficult to change.


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Relevance of public policies

•Scientific understanding•Improves our knowledge of society•Linkages between social and economic

conditions•Response of political system to those

conditions


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The role of public policy in governing business•When new public policies are created,

there are generally three key things involved in the process: the problem, the player and the policy.

•The problem is the issue that needs to be addressed, the player is the individual or group that has to be addressed, and the policy is the finalized course of action.


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•The rational model for the public policy making process can be typically divided into 3 steps: agenda setting, option formulation, and implementation.

•Government officials or the agencies meet to discuss the problem at the end.


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•Economic policy :Economic policy is of vital importance that

affects the business.It deals with the tools that the government

uses to manage the economy or solve economic problems


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•Social welfare policy:The nation that the government is

responsible for its citizens is a relatively new idea. Social welfare policy is implemented through many programs designed to improve health,education,housing,employment.


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Government and public policy

•A policy is typically designed as principle or rule to guide decisions and achieve rational outcomes. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol.


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Classification of public policy• Policies may be classified in many different

ways:• Distributive policies:Distributive policies extend goods and services

to members of an organization, as well as distributing the cost of the goods/services amongst the members of the organization.

Examples include government policies that impact spending for welfare, public education, highways and public safety or a professional organization’s benefit plan.


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•Regulatory policies: Regulatory policies or mandates, limit the discretion of individuals and agencies, or otherwise compel certain types of behavior. These policies are generally thought to be best applied when good behavior can be easily defined and bad behavior can be easily regulated and punished through fines or sanctions.


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•Constituent policies:It creates executive power entities or deal

with laws, it also deals with fiscal policy in some circumstances.

•Miscellaneous policies:Polices are dynamic they are not just static

lists of goals or laws. Policy blueprints have to be implemented, often with unexpected results.


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Types of public policies

1.Defense policy:It is a public policy dealing with

international security and the military. it comprises the measures and initiatives that governments do or do not take in relation to decision making and strategic goals such as when and how to commit national armed forces


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•Purpose of defense policy:Defense policy identifies threats of hostility

and aggression based on intelligence analysis, and defines military scope of national security,defence alliances, combat readiness, military organization of national forces and their use of military technology.


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•Development of defense policy: A defense policy is created through the

defense policy process of making important organizational decisions, including the identification of priorities and different alternatives such as defense personnel and technology programs or budget priorities.


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2. Domestic policy

It is an area of public policy which concerns laws government programs, and administrative decisions which are directly related to all issues and activity within a nation’s borders.

It differs from foreign policy, which refers to ways a govt advances its interests in world politics.


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3. Economic policy•Every economy has economy policy :A few example of types of economic policy

include:1. Macroeconomic stabilization policy tries to

keep the money supply growing, but not so quick that it results in excessive inflation.

2. Trade policy refers to tariffs,trade agreements and the international institutions that govern them.

3. Policies designed to create economic growth


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•policies related to development economies

•Redistribution of income,property or wealth

•Regulation•Anti trust•Industrial policy•Technology based economic development

policy


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4. Education policy

•It refers to collection of laws and rules that govern the operation of education systems. Education occurs in many forms for many purposes through many institutions.

•Ex: it include early childhood education, till 12 the school


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5.Energy policy

•It is the manner in which a given entity has decided to address issues of energy development including energy, distribution and consumption. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques.


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There are 4 major drivers for energy policy• Rapidly growing economy with a need for

dependable and reliable supply of electricity, gas and petroleum products

• Increasing household incomes, with a need for affordable and adequate supply of electricty and clean cooking fuels

• Limited domestic reserves of fossil fuels and the need to import a vast fraction of the gas

• Indoor, urban and regional environmental impacts necessitating the need for the adoption of cleaner fuels and cleaner technologies


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6.Environmental policy

•It is useful to consider that environmental policy comprises two major terms; environment and policy.

•Environment primarily refers to the ecological dimension but also take account of social dimension(quality of life) and an economic dimension(resource management)


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Benefits from govt

•To implement environment friendly policies the government is announcing green initiatives, tax exemptions for the companies who is following environment friendly policy


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7.Foreign policy

•It is also called foreign relation’s policy, consists of self interest strategies chosen by state to safeguard its national interests and to achieve its goals within the international relations milieu.


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8. Health policy

•Health policy can be defined as the “decisions,plans, and actions that are undertaken to achieve specific health care goals within a society.” According to world health organization, an explicit health policy can achieve several things: it defines a vision for the future; it outlines priorities and the expeceted roles of different groups; and it builds consensus and informs people.


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•There are many categories of health policies,including personal health care policy,pharmaceutical policy, and policies related to public health such as vaccatination policy,tobacco control policy.


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Need for business policy

•Business policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization.

•It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions.


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Features of business policy

•Specific•Clear•Reliable•Appropriate•Simple•Inclusive•Flexible •Stable


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Elements of public policy

•A public policy is an action by a government that affects public welfare. It includes:

1. Laws2. Rules and regulations(FDA)3. Programs(welfare,Medicare) and

practices4. Specific policy changes5. At international,national,state and local

levels


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Corporate and public policy

•In addition to being socially responsible firm, a firm’s social responsiveness is also of interest.

•Generally, companies react to issues after they have been brought to light. Corporations should have policies in place that identifies their views on issues and willingness to stand behind those views. This is known as corporate public policy


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Planning and implementing corporate public policy• The adoptions of a corporate public policy

agenda involves 5 steps.• Scan the environment• Assess organizational assets meaning that

once social trends have been identified, the company must figure out how it can address that trends and whether it has the ability to do so with its current assets

• The third step is to set the policy• The fourth step is to implement the policy• The fifth step is to measure the results


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Framing of public policy

Public policy is created by legislation. It is generally defined as the principles or standards regarded by legislature, or the courts, as being of fundamental concern to the state and the whole of society.

How is public policy framed?It is formulated with active involvement on

the part of interest groups whose members do not seek election.


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•It comprises of expert and panel to make final judgment

•Based on the feedback or opinion of the expert committee the public policy is framed


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Levels of public policy

•The below is the public policy cycle:1. Agenda setting: problems are defined

and issues are raised. Gate keepers filter out those which will be given attention by either the executive or the legislative branches

2. Formulation: analysis and politics determines how the agenda item is translated into an authoritative decision.


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3. Implementation-the authorized policy must be administered and enforced by an agency of govt. the agency must take instructions as stated in the policy, but will probably be called upon to provide missing pieces and to make judgments as to intent, goals, timetables

4.Budgeting:Financial resources must be brought to beat

within an ongoing annual stream of budget cycles.


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•5. Evaluation-the impact of the policy may be assessed . If goals exist, the effectiveness of the policy and its components can be determined. The feedback provided by evaluation is injected back to the agenda setting and frame new policies


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Government controls and regulations

• In 1951 the govt brought in Industrial development and regulations act. This act made licensing a part of industrial development

• The objectives of licensing were started as :• Facilitate desired pattern of industrial

development• Provide for development of backward regions• To encourage broad based ownership of

industries • To prevent concentration of power in the hands

of a few


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Government regulations in business

•Social, technological and value change1. National society 2. Communal society 3. Entitlements 4. Quality of life


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Interaction of business, government and the public•Government/ business relationship•Public/govt relationship•Business/public relationship

Two major regulatory issues•Industrial policy •privatization


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Government’s non regulatory influence on business•Industrial policy: Schools of thought•Accelerationists•Adjusters•Targeters


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Industrial policy

Pros•Declines of U.S competitiveness•Use by other nations•Ad hoc systemCons•Reduces market efficiency•Promotes political decisions•Foreign success variable•National attempts uncoordinated and

irrational privatization


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Types of regulation

•Economic regulation- Interstate commerce commission- Civil aeronautics board(CAB)- Federal communication commission•Social regulation- Environmental protection agency- Occupational safety and health

administration- Equal employment opportunity

commission


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Benefits of regulation

•Fair treatment of employees•Safer working conditions •Safer products•Cleaner air and water


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Costs of regulation

•Direct cost•Indirect cost•Induced cost•Reduced innovation•Reduced investment in plant and

equipment•Increased pressure on small business

Leadership & Management

Bgs chapter 4